Allianz Life said that, unlike current variable annuities with Guaranteed Minimum
Accumulation Benefits that require waiting periods of up to 10 years, the new Index Advantage product provides opportunity for benefits to be protected every year.
And on the living-benefit side, despite consumer demand for guaranteed withdrawal benefits, Hegna said he is a big fan of guaranteed-minimum
accumulation benefits. "It guarantees your cash," he said.
More recent benefits that do not require annuitization include guaranteed minimum withdrawal benefits, minimum withdrawal benefits for life and minimum
accumulation benefits in the account value.
From guaranteed minimum
accumulation benefits to expanding existing life products to formerly difficult-to-insure customers, innovation among life and annuity writers is impacting reinsurers.
* The industry is only in the beginning stages of developing minimum
accumulation benefits and minimum withdrawal benefits.